Issue 2

June 1996

Excluding Capacity-Constrained Entrants Through Exclusive Dealing: Theory and an Application to Ocean Shipping

This paper considers the competitive effects of exclusive dealing contracts in a three-player game: an incumbent, an entrant who is more efficient but capacity constrained, and a buyer.

The Access Pricing Problem: A Synthesis

The Baumol-Willig efficient component pricing rule states that it is efficient to set the price of access to an essential facility equal to the direct cost of access plus the opportunity cost to the i

Patent Height and Competition in Product Improvements

The stringency of novelty requirements that patent offices use in judging patentability defines the height of patent protection.

On the Interaction Between Vertical and Horizontal Product Differentiation: An Application to Banking

We study the conditions under which banks offer remote access. Note there exists interaction between location and taste for remote access.

Capacity Constraints and Export Performance: Theory and Evidence from Belgian Manufacturing

A mark-up model for export and domestic pricing is developed using the dual approach of cost functions and taking explicitly into account the possibility of (short-run) capacity constraints.

Increasing Competition in the British Electricity Spot Market

This paper models the effect of three policies that could increase the amount of competition in the electricity spot market in England and Wales.

Product Market Competition and the Impact of Price Uncertainty on Investment: Some Evidence From us Manufacturing Industries

We estimate the impact of price uncertainty on investment using a panel of US manufacturing industries. Pooling the data for all industries, uncertainty has no impact on current investment.